Inflation peaked at an annual rate of more than 8.0% in 2022, but has since eased back to come in at 6.0% on year in the second quarter. "The board's current assessment is that the risks around the inflation rate are broadly balanced," the RBA said in its latest statement on monetary policy on Friday. The RBA has toned down its narrative about the economic outlook when compared with its statement three months ago. Trimmed mean inflation, the RBA's preferred measure, is expected to run at an annual rate of 3.0% by the end of 2024--half the current rate of 6.0%. However there are still lingering upside risks to inflation, especially if wage pressures continue to grow.

Source: Wall Street Journal August 04, 2023 07:59 UTC